Information published on 2 November 2010 in the UIC electronic newsletter "UIC eNews" Nr 208.

Finland: VR Group records satisfactory net profit

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VR Group’s net turnover and operating profit continued their growth in the third quarter. VR Group’s operating profit amounted to M€ 34.1 (30.0) in the third quarter and M€ 24.9 (15.1) in the first nine months of the year.
VR Group’s net result for the third quarter was M€ 23.4 (24.0) and from the beginning of the year M€ 17.6 (12.7). Major factors in the growth in operating profit were the increase in net turnover and the lighter costs resulting from the programme of change.

CEO Mr Aro is particularly concerned about developments in financing in the Government budget for track construction and maintenance, for budget allocations get smaller year by year.“This is not just about the success of VR Group but it concerns the competitiveness of all rail services and the safety of the track network in the long term,” stresses Mr Aro.

Moderate growth in passenger services

The combined total number of passenger journeys for rail and road services increased 6.2 % in the third quarter from the previous year. The increase in bus services in the Greater Helsinki area was a particular factor in the rise in the number of journeys. VR has won new service routes for bus services in the Greater Helsinki area that were put out to competitive tendering, and these have increased passenger volumes.

Growth at Logistics levelled off

Freight carryings by the Group’s Logistics division were 14.1 % higher in the third quarter than in the previous year. During the quarter there were signs that the growth in freight volumes was levelling off, and towards the end of the quarter total carryings were no longer higher than in the previous year. Freight volumes are expected to remain for the final part of the year at the same level as in 2009. Factors in the positive developments in Logistics’ net result were the growth in carryings and the lighter cost structure achieved through the programme of change.